PRICE OF KEROSENE

Lake County Mail, Issue 16, 10 September 1947, Page 2

PRICE OF KEROSENE

The high price of in relation to that of petrol is apparently causing: considerable concern to farmers' for letters of bitter complaint have been received at head office. Actually the relatively high price of kerosene has been a subject, of many representations ...•to the Government authorities by the federation.- In February last, the research-officer inquired from the Price‘Tribunal why the net price of lighting kerosene was greater than; the net price of petrol, after deducting taxes on both products. It then appeared that the net. price of petrol, after deducting total taxes, was Is 3d a gallon compared Avith,the lighting kerosene price of la 7d a gallon. As the domestic value of both products then appeared.to be approximately 4£d a gallon in the country, of-origin, the difference in the untaxed price per gallon, seemed rather large.; ■ The Price Tribunal replied (in February) that the c.i.f.e. cost of lighting kerosene was 8.098 d, a gallon as compared with 7.75 d for petrol. Kerosene was a small trade and confined to drum deliveries whereas petrol, being delivered in bulk, involved less distribution and handling expense. In April the comparative prices of power kerosene and-petrol were brought to the notice of the Minister of , Industries and Commerce. He replied that the reason the net price of power kerosene was slightly higher than that of. petrol was due not only to the higher handling charges of the former but also because the c.i.f.e. cost of power kerosene was approximately Id more than that of petrol. ' ■t ' • At that time the net price of power kerosene was Is 3d per gallon and that of benzine Is 2.8 d when both were brought in 44-gallon s drums, made up, as follows: Power Petrol Kerosene s. d. s. d. Price on 44 gal. drums 1 6| •• 2 5i Less refund on drums 3 Less Rebate on Road Tax 1 2.7, Net Prices I 3$ 1 2.8 In a note concerning handling charges the Minister said kerosene had a comparatively restricted market and was, therefore, imported and trans-, ported to bulk delivery points in drum lots Petrol on the other hand, was brought in by tanker, delivered W installation points' in bulk by road or rail tank wagons, and was only at that stage placed 1 into drums for delivery to ultimate consumers. * v ' . Bulk delivery of petrol to the com- , panics’ installation points and depots brought about a certain , saving in handling and transportation charges and that factor, taken in conjunction, with the lower c.i.f.e. cost, enabled petrol to be sold to farmers at a net price then, slightly below that of power kerosene. That still appears to be the situation despite recent slight alterations in price. . -